In a manufacturing set-up, there are 3 key performance indicators which reflect the over-all equipment efficiency of a certain product: quality rate, machine efficiency, performance efficiency. These factors show on which area the product has encountered problems and what is the formulated solution on the said dilemma. Giving solution to a problem are improvements and well-known in Japanese language as “kaizen“. This is mostly heard in Japanese firms and some other companies adapt this as well. Kaizen is about improvement in terms of engineering, manufacturing and business management. This is not only applied in manufacturing business but to other dealings as well like healthcare, banking, government and other industries.
Kaizen is all about continuous improvement which promotes the participation of the involved workers. It involves brain-storming which uses methods such as fish bone diagrams that illustrates the probable root cause of the problem. After realizing the probable root cause and defining the true root cause, implementation of permanent corrective action follows then the preventive corrective action. Kaizen is not only for trouble-shooting a problem but for any improvements within the workplace which could greatly contribute to the over-all efficiency of a line. Sometimes this is one way of experimenting within workplace that could make a process flow easier without deviation to set targets.
Toyota Cars holds this kind of event wherein their suppliers were invited to show any kaizen project specifically for parts supplied to them. Sometimes, you’ll just be surprised on how something impossible can be possible.
Kaizen also applies to “muda” elimination. “Muda” is a Japanese word for “waste”. There may be unnecessary process or items involved on the present practice that causes waste of time, energy, space and others. This elongates process and sometimes even confusing that does not help in terms of productivity. Thru simplification or total change of a procedure, results can contribute to great savings on time, manpower and energy. First step is improving a procedure which may lead to continuous improvement that implies advantage both to the company, stakeholders and the community.
Elements to start kaizen is the willingness, effort, involvement and communication of all employees as well as quality. After the identification of problem, proposed actions are carefully planned that includes PDCA cycle.
One perfect example wherein kaizen is very much applicable is maintaining of inventory level. This requires proper planning and communication with sub-contractors for just in time arrival of parts. For manufacturing of parts, involved wastes are excessive rejects and over production. For finished goods, a target quantity or level of stocks for keeping must be set and observed. At the end of the month, inventory from raw materials to goods delivered are being reconciled. Discrepancies are mostly encountered for there is no such perfect inventory. But there is allowable rate of difference that will not affect the system.
Implementation of kaizen promises vast effects that can lighten any workload. But it is not an easy task for it is not an activity of an individual but of whole organization.
